An Indian court has ordered the liquidation of bankrupt shipbuilder Bharati Defence and Infrastructure.
The move means more than 850 people will lose their jobs and lenders can wave goodbye to much of the INR 111.37bn ($1.56bn) owed to them, the Hindu Business Line reported.
The insolvency court in Mumbai rejected the resolution plan submitted by corporate restructuring firm Edelweiss Asset Reconstruction (ARC).
The yard has no current merchant ship orders, but has built vessels for owner like SCI, Ultrapetrol, POSH and Bourbon in the past.
It was once India's second-biggest private yard.
ARC became a financial creditor after taking over debt of INR 62bn from 20 banks by paying INR 18bn.
The court said: “The resolution applicant has not given a practical and viable plan to manage the affairs of the corporate debtor.
"The plan contains a lot of uncertainties, a lot of speculation. The public shareholding in the company would be reduced to a mere 2% from the current substantial level of approximately 60%.”
The report said the plan envisioned INR 4bn being paid to creditors after three years - a recovery rate of 3.5%.
Bharati's corporate debt restructuring (CDR) process failed in 2015.
